Business, Finance & Economics

Geithner: Fed won't give IMF funds for bailout


U.S. Treasury Secretary Timothy Geithner.


Alex Wong

US Treasury Secretary Timothy Geithner denied reports that the US Federal Reserve would give the International Monetary Fund money toward bailout funds for the crisis, the Associated Press reported.

"The reports I've read in the press about what the Fed can do are not accurate," Geithner said after meetings with German Finance Minister Wolfgang Schaeuble on Tuesday, Reuters reported.

Read more at GlobalPost: Timothy Geithner: Europe won't let another Lehman happen

Geithner did say he was “very encouraged” by the reforms taken so far by European nations and that the European Central Bank was playing a positive role in the debt crisis. He pointed to the new treaty to strengthen fiscal euro zone rules proposed by German Chancellor Angela Merkel and French President Nicolas Sarkozy, the Wall Street Journal reported.

"This will take time and it will take a sustained commitment of political will," Geithner said, the WSJ reported. He did say he wouldn’t give an opinion on what moves the ECB should or shouldn’t make. "The ECB has been playing a central role in this crisis and is obviously going to continue to do that. And of course, ultimately these things only get solved by governments and central banks doing what is necessary, but their roles are different," Geithner said, WSJ reported.

Read more at GlobalPost: Geithner joins EU to solve debt crisis